Concession rates are finally beginning to tumble after trending upwards for well over a year. Queens concessions dropped to 9.9 percent in November, the lowest level since summer of 2017. Manhattan concessions fell 7.7 percent from November 2017 to 14.7 percent. Meanwhile, in Brooklyn, concessions were down 9.7 percentage points, to 9.2 percent.
One would think that such a steep decline in concession rates would correlate with a notable rise in rents, but a report published by StreetEasy reveals that rent gains were modest in 2018. Median rents in Queens went up 1.8 percent from November 2017 to November 2018, to $2,165; Manhattan’s median rent in November was $3,216, a 2.4 percent bump from the year before; and Brooklyn saw a modest 1.7 percent increase, to $2,596 over the same period of time (the latter number was skewed because North Brooklyn rents experienced a 1.1 percent year-over-year decline due to the impending shutdown of the L Train).
While this is positive news for landlords, it suggests that renters still have a lot of options, and that they are willing to pay for the right apartment. It also suggests that outfitting a building with the right amenities can go a long way.
Unfortunately, amenities tend to require significant capital investments, and not every landlord has millions stashed away in their war chest. This is one of the reasons why so many owners throughout the city have traditionally offered concessions or cut rent as a means of staying competitive. Though these options reduce revenue, they don’t increase operating expenses or require one take out a loan.
However, what if you could add a major amenity to your building for free? What if this amenity not only didn’t cost anything to install, but could be used to produce revenue for the building?
It’s not too good to be true. This is the @ACES Laundry way. Aces will build out a laundry room in your building for free; they will install energy efficient machines that use less electricity and water than traditional washers and driers; they will maintain the washers and driers; and they will even cure any laundry-related violations you may receive from the city. You just have share some of the income generated by the machines. That’s it.
By working with Aces, you are guaranteed a secondary revenue stream and something that will add value to your building for years to come.